According to a report from ETNews, Busan, South Korea’s second largest city in terms of population is mulling over the decision to implement a local cryptocurrency in order to revive its economy.
South Korea is notorious for its aggressive regulatory stance towards cryptocurrencies, all but banning the digital assets. Every anonymous transaction goes through an ID check which is then siphoned towards the local taxing agency for better control.
Despite these steep regulatory frameworks, the city of Busan still considers the blockchain as a perfect platform to launch their new development phase of the local economy. The idea was put forward by Busan authorities but it has definitely been supported by the local bank, BNK Busan, which is in direct collaboration with the city’s authorities.
It’s not clear whether or not the blockchain will give Busan what it wants in terms of economic development, but having the title of a blockchain regulation-free zone it is sure to receive an influx of applications of local crypto companies especially Binance, which wants to have a much better grip of the East-Asian region.
The groundwork seems to have already been laid as the South Korean government is planning to invest around $3.5 million in Busan to create a blockchain enabled virtual power plant.
Busan’s initiative may be opposed by the Japanese regulator. Although its seems like an infiltration in foreign affairs the Japanese financial regulator has its own security issues when it comes to blockchain, especially with the taxing laws.
Image courtesy of Busan Cryptocurrency